So who here actually owns their home?
it's me, Alan Rickman.
Joined: Mar 2007
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From: noitacol
Own as in no loan or own as in not rented?
(I mean.. you actually OWN your home; but for some reason people with loans on their houses are also homeowners, even though technically they don't own it!)
(I mean.. you actually OWN your home; but for some reason people with loans on their houses are also homeowners, even though technically they don't own it!)
Last edited by timmahh; Nov 5, 2009 at 06:21 PM.
is learning to moonwalk i
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From: SoCal
Isn't Oregon a community property state? So, when you said "I do" you were basically saying "I do give you half of everything I own."
And, no. I don't fully own my home (condo). I own about 20% of it. My wife owns about 40% of another condo. And we will both own about 3.5% of a single family home in about 2 weeks.
And I said "I" and "My wife" separately because we have quit-claimed each others' properties to make paperwork easie. Though I don't know that it sactually makes a difference when it comes to community propert.
And, no. I don't fully own my home (condo). I own about 20% of it. My wife owns about 40% of another condo. And we will both own about 3.5% of a single family home in about 2 weeks.
And I said "I" and "My wife" separately because we have quit-claimed each others' properties to make paperwork easie. Though I don't know that it sactually makes a difference when it comes to community propert.
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From: Better Neighborhood, Arizona
One on the right for me
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From: Bay Area, CA
Isn't Oregon a community property state? So, when you said "I do" you were basically saying "I do give you half of everything I own."
And, no. I don't fully own my home (condo). I own about 20% of it. My wife owns about 40% of another condo. And we will both own about 3.5% of a single family home in about 2 weeks.
And I said "I" and "My wife" separately because we have quit-claimed each others' properties to make paperwork easie. Though I don't know that it sactually makes a difference when it comes to community propert.
And, no. I don't fully own my home (condo). I own about 20% of it. My wife owns about 40% of another condo. And we will both own about 3.5% of a single family home in about 2 weeks.
And I said "I" and "My wife" separately because we have quit-claimed each others' properties to make paperwork easie. Though I don't know that it sactually makes a difference when it comes to community propert.
Oderint dum metuant.
Joined: Mar 2005
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From: Lake Wylie
I own almost 60% of my home. I could pay it off in five years, if I wanted. Not sure what that percentage will become when I build/buy in the next year or so, but I plan on having the next house paid off within ten years of getting it.
Just closed January 2008 but I'm young so I got a ways to go. I'm also a realtor so there's some quick and easy steps to take to pay it down in way less than 30 years...maybe 15 or 10 www.newlistings4free.com
Honda+Blue=My garage
Joined: Dec 2003
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From: DFW TX
The write off on the interest with my note rate doesn't warrant paying it off vs what I can make on the money (even with the current market)
BTW I have about 25% equity, with the mortgage being my only debt.
BTW I have about 25% equity, with the mortgage being my only debt.
'05 TSX 6MT
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Wish my loan was at 120%+ of value, then I could have an exit today, might live rent free as ejection could take a year or more.
Yesterday, looked at a bunch of house resales over long holding period (10 years +) in my metro. Virtually all had CPI adjusted price declines from initial acquisition to resale
On top of that, they likely did over 1% of value per year in capital improvements.
In virtually all cases, there was positive nominal appreciation, but negative real appreciation. Not a good investment at all, and the mtg pmt was higher than rent, indicating negative option value to equity ownership
In bad times, option value is negative, and in my metro, option value was negative on average, over long holding periods that account for an entire cycle.
Yesterday, looked at a bunch of house resales over long holding period (10 years +) in my metro. Virtually all had CPI adjusted price declines from initial acquisition to resale
On top of that, they likely did over 1% of value per year in capital improvements.
In virtually all cases, there was positive nominal appreciation, but negative real appreciation. Not a good investment at all, and the mtg pmt was higher than rent, indicating negative option value to equity ownership
In bad times, option value is negative, and in my metro, option value was negative on average, over long holding periods that account for an entire cycle.
One on the right for me
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From: Bay Area, CA
The basic idea is that, while married, husband and wife contribute equally to wealth, property, etc. Absent some agreement, all property (wages, tangible stuff, and land) acquired during the marriage is owned equally by the husband and wife.
It is really only important upon death, divorce, or when a creditor needs to collect on a debt.
Property prior to entering the marriage still remains separate unless a number of things happen.
It is really only important upon death, divorce, or when a creditor needs to collect on a debt.
Property prior to entering the marriage still remains separate unless a number of things happen.
I now drive an accord....
Joined: Mar 2003
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From: Etters, PA
I am a "homeowner" but the bank holds the note to my house. I have no plans to pay off this house. This is our first home and we plan to stay here for a few more years before upgrading to what is hopefully our final house. Then I will look forward to owning outright
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From: Appleton WI
Im a little over 50%. My plans are to take the equity in a year or so to finance the building of my new home (which i will be doing myself) and pay my existing home off with whats left at which point i will be a home owner without owing the bank a dime 
We do not owe much, however, we keep the mortgage b/c our rate is low so we can actually make more money writing it off and making wise investments. So between interest and tax deductions, plus business deductions (self-employed... home is my "office"), doesn't make sense pay it off. Need those deductions to keep our taxable income low
Honda+Blue=My garage
Joined: Dec 2003
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From: DFW TX
We do not owe much, however, we keep the mortgage b/c our rate is low so we can actually make more money writing it off and making wise investments. So between interest and tax deductions, plus business deductions (self-employed... home is my "office"), doesn't make sense pay it off. Need those deductions to keep our taxable income low
to the financially savvy
I feel the need...
Joined: May 2004
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From: Motown
It means we live in the 
land of Amerika, so Ken really insn't off the hook yet, only $546,668 to go! 
http://blog.heritage.org/2009/05/29/...national-debt/
land of Amerika, so Ken really insn't off the hook yet, only $546,668 to go! http://blog.heritage.org/2009/05/29/...national-debt/
I feel the need...
Joined: May 2004
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From: Motown
Have you been taking notes from bubbamark? Destroying your credit not to mention your moral obligations while waiting around for an eviction sounds like a sweet plan! Rent payments, unlike a fixed rate mortgage, do not stay the same.For any of you paying attention, Uncle Sam is throwing a Great Stagflation Invitational poker tournament. I suggest building a decent chip stack so you can get sponsored by the GSE's. You can learn and play for free at freddiemac.com -- fanniemae.com or ginniemae.gov
The irony of this housing bust is that its the one of the best times evar to be a new homeowner. Foreclosure/short-sale/desperate sellers galore. Plus you get cheap financing courtesy of your friendly central banker Uncle Ben and his regulator Barney Frank and Chris Dodd.
Personally, I'm thinking of rolling back out from a 10 to a 30yr -- this is stupidly cheap mortgage money on a historical basis. Why not grab some Obamabucks and pay back with cheaper, depreciating, inflationary dollars -- thats what the book says to do. After we emerge from this deflationary/deleveraging cycle -- the blow back could make the Volcker era look like a frat party.
it's a car-drive it
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From: North Carolina
Safety Car
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From: NYC
Have you been taking notes from bubbamark? Destroying your credit not to mention your moral obligations while waiting around for an eviction sounds like a sweet plan! Rent payments, unlike a fixed rate mortgage, do not stay the same.For any of you paying attention, Uncle Sam is throwing a Great Stagflation Invitational poker tournament. I suggest building a decent chip stack so you can get sponsored by the GSE's. You can learn and play for free at freddiemac.com -- fanniemae.com or ginniemae.gov
The irony of this housing bust is that its the one of the best times evar to be a new homeowner. Foreclosure/short-sale/desperate sellers galore. Plus you get cheap financing courtesy of your friendly central banker Uncle Ben and his regulator Barney Frank and Chris Dodd.
Personally, I'm thinking of rolling back out from a 10 to a 30yr -- this is stupidly cheap mortgage money on a historical basis. Why not grab some Obamabucks and pay back with cheaper, depreciating, inflationary dollars -- thats what the book says to do. After we emerge from this deflationary/deleveraging cycle -- the blow back could make the Volcker era look like a frat party.
for those listening - FRMs only! An ARM tied to a treasury index is NOT something borrowers should be pushing for right now.
Considering I just bought in July....I don't "own" my house one bit. Well...maybe a couple sq. ft., lol, but that's about it.
Unless I land some sweet job, I've got 29.8 years to go, lol.
Unless I land some sweet job, I've got 29.8 years to go, lol.
Safety Car
Joined: Jul 2008
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From: NYC
interesting fact: CPM loans were created by banks about 40 years ago when they figured out the average holding of a 30 yr loan was for only 8-12 years. so banks made the initial years of the 30 yr loan very top heavy with interest to produce higher yields for the bank.
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From: Jersey
is learning to moonwalk i
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From: SoCal
sometimes you dont really own anything in the initial payments! in a CPM (constant payment MTG) 99% of a begining payment goes towards interest. the other 1% goes to reducing the balance on the loan. the interest reduces over the holding of the loan.
interesting fact: CPM loans were created by banks about 40 years ago when they figured out the average holding of a 30 yr loan was for only 8-12 years. so banks made the initial years of the 30 yr loan very top heavy with interest to produce higher yields for the bank.
interesting fact: CPM loans were created by banks about 40 years ago when they figured out the average holding of a 30 yr loan was for only 8-12 years. so banks made the initial years of the 30 yr loan very top heavy with interest to produce higher yields for the bank.
sometimes you dont really own anything in the initial payments! in a CPM (constant payment MTG) 99% of a begining payment goes towards interest. the other 1% goes to reducing the balance on the loan. the interest reduces over the holding of the loan.
interesting fact: CPM loans were created by banks about 40 years ago when they figured out the average holding of a 30 yr loan was for only 8-12 years. so banks made the initial years of the 30 yr loan very top heavy with interest to produce higher yields for the bank.
interesting fact: CPM loans were created by banks about 40 years ago when they figured out the average holding of a 30 yr loan was for only 8-12 years. so banks made the initial years of the 30 yr loan very top heavy with interest to produce higher yields for the bank.
It's not quite that lopsided - closer to 80/20 - but it is a very valid point. That's why if you plan on staying in that home for a while, you will save $$ and years off your loan if you make extra payments toward principle. One extra mortgage payment a year knocks off about 8 years.
